RBA raises rates to 4.35 percent and signals potential pause
The RBA raised rates to 4.35 percent to curb inflation from high oil prices. The board signaled a pause to assess risks from the ongoing Middle East conflict.
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The Reserve Bank of Australia raised the cash rate 25 basis points to 4.35% on Tuesday morning. This third hike of 2025 reverses all rate cuts made during the previous year. Investors now face a potential policy pause as the central bank gauges inflation risks from Middle East energy shocks.
Governor Michele Bullock said the board considers monetary policy slightly restrictive following the recent tightening cycle. The decision to hike passed with an 8–1 vote, showing a hawkish shift from the 5-4 split recorded in March.
